The national budget is coming: how to prepare your business or entity

The national budget statement is normally presented in the last quarter of the year and is followed by the Finance Act, which turns proposals into law. For SMEs it can change tax obligations and costs. For public entities it shapes funding allocations and expectations. Businesses that plan for it move faster than those that read about it afterwards.

What to look out for

Tax measures

• Changes to income tax, VAT, PAYE and other tax rates or thresholds.
• New or amended levies and duties.
• Capital allowances and incentives for investment.
• Compliance and reporting changes.

Economic and currency measures

• Exchange rate and monetary policy direction.
• Import duties and customs changes.
• Measures affecting exporters and cross-border trade.

For public entities

• Allocations and grants.
• Expenditure controls and fiscal discipline measures.
• Procurement or reporting requirements.

How to prepare before the announcement

1. Review last year. List what changed last time and how it affected your business. This shows where you are most sensitive.
2. Build scenarios. Update your budget and cash flow for a favourable, expected and adverse outcome.
3. Check your contracts. Do your customer contracts allow price adjustment for tax or duty changes? If not, note which ones to renegotiate.
4. Review pricing and payroll. Know which tax changes would affect your prices and your employees’ take-home pay.
5. Diarise a post-budget review. Arrange a meeting within two weeks of the statement to agree on actions.

After the announcement

Announcements are not law. Proposals may change before enactment, and effective dates vary. Separate what is announced, what is enacted and when it starts, and act on the last of these.